Columbia Seligman Premium Technology Growth Fund

STK

Market cap $706M

There's one critical takeaway for us as AI flits through the market, whacking sector after sector as it does: Actively managed funds—closed-end funds (CEFs), in particular—are the best way to play it.

BOSTON--(BUSINESS WIRE)--Today, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) declared a first-quarter distribution, pursuant to its managed distribution policy, in the amount of $0.4625 per share, which is equal to a quarterly rate of 2.3125% (9.25% annualized) of the $20.00 offering price in the Fund's initial public offering in November 2009. The first-quarter distribution of $0.4625 per share is equal to a quarterly rate of 1.1577% (4.63% annualized) of the F.

Columbia Seligman Premium Technology Growth Fund remains a strong buy, trading at a rare 3.97% NAV discount despite robust 12-month total returns of 31.7%. STK offers a compelling 6.8% dividend yield, supported by dynamic covered call strategies and exposure to AI-driven technology leaders, including Bloom Energy. Option overlay strategies enhance income and buffer volatility, but heavy tech sector concentration exposes STK to downside if market sentiment shifts.

Columbia Seligman Premium Technology Growth Fund (STK) offers long-term capital appreciation and moderate income via a tech-focused, buy-write strategy with dynamic overwrite exposure. STK has delivered a 15.82% annualized return since inception, outperforming the S&P 500, with a current -4.8% discount to NAV and a forward yield of 4.94%. The fund's rule-based overwrite approach allows for greater upside capture in bull markets, but exposes investors to significant drawdowns during volatility.

BOSTON--(BUSINESS WIRE)--Today, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) declared a fourth quarter distribution, that is beyond its typical quarterly managed distribution, in the total amount of $1.3280 per share of common stock (which includes the Fund's typical quarterly $0.4625 per share distribution). A federal excise tax of 4% applies to funds that do not distribute substantially all of their annual income (including net gains) before the end of their f.

Columbia Seligman Premium Technology Growth Fund is a core holding for us, delivering strong returns and high, growing distributions via tech stocks and covered calls. STK currently trades at a 4.47% discount to NAV, deeper than historical averages, but appears overbought on technical charts. The fund boasts veteran management, outperformance vs. peers and the S&P 500 over multiple timeframes, and a robust dividend history with special payouts.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight the ten best CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select 10 CEFs every month from around 500 closed-end funds.

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Columbia Seligman Premium Technology Growth Fund is upgraded to a strong buy, trading at a rare 3.8% discount to NAV. STK offers exposure to top technology growth companies and utilizes a dynamic covered call strategy, delivering a 5.5% yield and impressive long-term returns. While STK lacks downside protection and underperforms tech ETFs in downturns, its income and capital appreciation track record remain strong.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight the ten best CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select 10 CEFs every month from around 500 closed-end funds.